If you’re buying a home on the Gold Coast, it can be an exciting prospect but one which is overwhelming as well.
Our expert conveyancers have listed a few useful tips to consider before you sign the contract. This advice can save you from a great deal of stress when buying property.
Speak with your conveyancer before signing a contract
Make sure you talk with the conveyancer before you sign the contract to ensure that the purchasing entity is correctly described. If you are planning to obtain finance, the name you place on the financial application should match the contract. Purchasers usually use a preferred name instead of their legal name. These circumstances might risk the termination of a contract. Although termination sounds pretty straightforward but you are reliant upon the seller accepting the termination and you might lose your deposit and incur additional legal fees for preparing a new contract.
Carry out building and pest inspection checks
Spending a few $100 will help save you thousands after you purchase the property and find a termite nest or a rotting roof. It is recommended that the contract should be made conditional upon a building and pest inspection. It will allow you the opportunity to terminate the contract or get a reduction in the purchase price.
Everything you expect has to be included in the contract
When you work with an expert conveyancer on the Gold Coast, they ensure that all negotiations are carried out before the contract is signed. They will insert special conditions to the contract in the written form to ensure a sufficient description of the agreement reached. You will have the termination or compensation rights if these conditions are breached by the seller.
The contract should be subject to the simultaneous settlement of your sale
If you are selling your existing property before purchasing a new one, the contract should be subject to the simultaneous settlement of your sale. If you do not add this to the contract you are at risk of being required to proceed with the purchase of the property even if your sale has been delayed or terminated.
Give sufficient time for the settlement to occur
You should wait at least a minimum of 14 days from the contract becoming unconditional for the settlement to take place. It is especially important if you’re obtaining finance or you need to make arrangements to access funds. One should not always presume that the seller will grant them an extension of time or decline to charge a penalty in case of a delay.
Get your insurance in order
If you want to avoid the risk it is important that you have an appropriate insurance in place, in case the property is damaged or destroyed.
Strive to limit the deposit you have to pay
You should not pay more than 10% of the purchase price and avoid paying a split deposit assuming that your bank will grant you access to the loan funds prior to settlement. It is recommended that the smallest amount acceptable to the seller should be paid by way of deposit. It reduces the amount of money that you will risk losing if you terminate the contract or you might have to forfeit your deposit as a result of a breach.
Instead of signing a contract on the spot, speak to a conveyancer in Gold Coast. They will review your contract free of charge and provide you with a quick advice on any issues down the line.